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Maine Payday Loans - Maine laws direct payday lenders on stringent requirement to do business in state

Maine State Map
Maine State Map
Everyone has heard stories about how one friend or another, or even a business associate, has taken out a cash advance loan (which is a way of borrowing funds until your next payday - by, in most cases, writing a post dated check for the amount of the loan plus any fees attached to it, and having the lender hold onto the check until a predetermined date - which, is usually the borrowers next payday). Some of these stories come with a lot of exaggeration, and in some cases out right misdirection when it comes to the dealings that these people have had with cash advance services. Most people who have tried a cash advance service are attempting to get immediate cash for some short-term emergency that comes in between paychecks. In the past, a lot of us have used pawnshops to fit that bill for emergency funds - by taking valuable and sometimes precious property to a total stranger and asking him to evaluate its worth and loan you money based on what he or she thinks. This is been an often disputed and debated method of obtaining cash, as a lot of people have found themselves in the position of losing their collateral; in some cases, due to no fault of their own, as these operators “accidentally” sell off the collateral under the guise of a loan or loan payments being late or defaulted.

Maine State Flag
Maine State Flag
With the advent of the cash advance, consumers all over the world have now begun to take advantage of a viable funding option that does not put hard earned or keepsake collateral at risk. Maine payday loans have become a source of funding for millions of citizens - without the unnecessary risk of losing assets. Cash advances under proposed Maine legislature will effectively eliminate the need for putting up collateral for small loans; Maine payday loans will be made by a reputable commercial enterprises to consumers who wish to borrow cash for short-term purposes. According to the proposed statute, the small loan interest rate max will be 17.5% for a 14 day loan. Prior to the passing of the new legislation, lending of this nature is not strongly monitored or regulated in any form or fashion; as long as the lender and borrower are in agreement on terms for a particular loan, any negotiated interest rates and finance charges are fully within the limits of the law. When the new legislation is enacted, consumers will have more protection by way of limited interest rates and finance charges. We expect that lawmakers will work out these terms and conditions with the industry in the very near future.

For now, here are a few important pointers to take with you when considering getting a Maine payday loan:

Maine payday loans
Maine payday loans
  • The first tip is to always keep in mind what your own personal limitations are financially; you never want to borrow more than you can afford to reap a on the date that it is due. If you’re borrowing $500, for instance, be 100% sure that within two weeks you will be able to repay that $500 without being drastically damaged in terms of your bills and obligations that are due at that point. If borrowing $500 is going to take up a significant portion of your next check, and you have other bills and expenses that have to come out of that check as well, it may not be a good idea to borrow quite as much. A simple rule of thumb is to borrow only up to 25 to 40% of your next check - as long as that amount is unencumbered. If you are borrowing a specific amount to prepay a deal that would be coming out of that check, then you simply have to keep in mind that you will have additional fees attached to the amount of the loan. Your bill may be paid off but consider the cost and weighed out the difference.
  • The next thing to keep in mind when applying for Maine payday loans is what are the finance charges or interest rates that the company are dealing with is looking at charging? If you don’t know, then you already are facing a problem - all interest rates and fees should be prominently posted on May when those doors or walls at a brick-and-mortar location or prominently on the home page or some other specific page within a website, if you’re working with the Internet-based cash advance service. If you have no idea of what the interest rate and fees are that are attached to the loan, then it might behoove you to move on to a more reputable company.
  • The next thing you want to keep in mind, is to be sure not to deal with just the first company that you come across that offers Maine payday loans, you’ll want to conduct a thorough search of various services to find out who’s offering the best possible interest rates, and who has the best reputation for being an aboveboard company in your state. Working with an unknown or company that no one has ever heard of, can lead to heart ache in many cases; you want to stick with companies that are treading on familiar ground, for one thing; this means companies that are active within the U.S. be sure that the company that you are considering taking out a loan from has some sort of US base of operations, so that you can reach out and touch someone in customer service when you have a question or comment or a problem.
  • The last but not least point that I will leave you with is to be sure that you are very well versed in everything that you’re signing; don’t simply sign on the dotted line without reading my rants without knowing the terms and conditions and penalties attached to your loan; although this is a small short-term loan, you will want to treat it as if it is a very big deal, because a small loan, once defaulted, can turn into a very big deal. One of the main things that you want to know regarding the loan terms, aside from the interest rate charges, is exactly when your loan is due. You want to understand what your due date is, so that you do not risk default setting or accumulating late charges due to an oversight on your behalf.